DON'T Sell On Etsy, Do THIS Instead | Make $10k/mo w/ Digital Products

The Wealth Revival With Hayley & Doug
26 Jun 202312:21

TLDRDoug, who runs a seven-figure digital products business with his wife Haley, discusses the pitfalls of relying on marketplaces like Etsy for selling digital products. He identifies three major issues: lead flow, price competition, and scalability. Doug explains that marketplaces control lead flow, making it difficult to gain visibility without competing in search engine results. Price competition is common, leading to lower returns as sellers drop prices to attract buyers. Scalability is also a concern, as it's hard to significantly increase income from low-priced products. He suggests building a personal social media brand as a solution, which can help control lead flow, avoid price competition by building trust and brand value, and scale the business more effectively. Doug emphasizes the importance of creating content that relates to the digital product and addresses potential customers' needs, as opposed to quick fixes that don't provide long-term success.

Takeaways

  • ๐Ÿš€ **Lead Flow Control**: Relying on marketplaces like Etsy for traffic means you don't have full control over lead flow; social media allows for more direct control over how many people see your product.
  • ๐Ÿ’ฐ **Price Competition**: Digital products often face low pricing, leading to a race to the bottom. Building a personal brand can help avoid this by creating trust and perceived value.
  • ๐Ÿ” **Scalability Issues**: Marketplaces limit how quickly you can scale your business. Social media provides a scalable platform for growth without relying on a third-party algorithm.
  • ๐Ÿ›๏ธ **Marketplace Limitations**: Platforms like Etsy control your online presence; having a personal brand gives you more control and reduces reliance on a single platform.
  • ๐Ÿ“ˆ **Growth Potential**: Social media offers the ability to increase both lead flow and prices, which are crucial for scaling a digital product business.
  • ๐Ÿ“ **Content Creation**: Posting relevant content on social media is a proactive way to attract leads, as opposed to the unpredictable nature of SEO and marketplace algorithms.
  • ๐Ÿ† **Brand Value**: Establishing a strong brand identity allows for higher pricing and less price competition, as customers are buying into the brand's value and story.
  • ๐Ÿ“ฑ **Social Media Power**: Using social media for business can provide a direct line to customers, bypassing the need for a marketplace and allowing for more organic growth.
  • ๐Ÿค **Building Trust**: A personal social media brand helps build trust with customers, which is essential for selling digital products at higher price points.
  • ๐Ÿšจ **Avoiding Algorithm Risk**: Being dependent on a marketplace's algorithm is risky; social media provides a more stable platform for business operations.
  • โ›ท๏ธ **Hockey Stick Growth**: The goal is to achieve rapid growth in sales, which is difficult through marketplaces but achievable with a strong social media presence.

Q & A

  • What are the three major flaws Doug points out with relying on marketplaces like Etsy for selling digital products?

    -The three major flaws are lead flow, price competition, and scalability. Lead flow refers to the challenge of attracting traffic when relying on a marketplace's search engine. Price competition is about the tendency to lower prices to gain sales, which can lead to lower returns. Scalability is the difficulty of achieving significant growth with low-priced digital products.

  • Why is it difficult to have full control over lead flow in a marketplace like Etsy?

    -Full control is difficult because you have to compete in the search engine results pages (SERPs) to get traffic. Even with SEO expertise, you can't guarantee a top ranking due to the algorithm's complexity and the fact that marketplaces control the lead flow.

  • How does price competition affect sellers in digital marketplaces?

    -Price competition can lead to a race to the bottom, where sellers lower their prices to try to gain more sales. This often results in reduced margins and profitability, making it hard to sustain a business in the long term.

  • What is Doug's suggestion for overcoming the flaws associated with selling digital products on marketplaces?

    -Doug suggests building a personal social media brand. This approach can help control lead flow, avoid price competition by building trust and brand value, and enable scalability by controlling the brand and its narrative.

  • How does having a personal social media brand help with scalability?

    -A personal brand on social media allows for greater scalability because it gives the seller control over lead flow and pricing. It also enables the seller to introduce higher-value products or services, such as courses or coaching programs, which can significantly increase revenue.

  • Why is it challenging to build trust and brand value when selling on platforms like Etsy?

    -It's challenging because these platforms often don't allow for the personal connection and storytelling that come with a strong brand. Without a face, name, and values associated with the product, it's difficult to establish the trust that can lead to higher perceived value and pricing power.

  • What is the significance of creating a personal social media brand in relation to the product being sold?

    -Creating a personal social media brand is significant because it allows the seller to share content related to the product, build a narrative around it, and demonstrate its value. This helps to establish trust with potential buyers and differentiate the product from competitors.

  • How does social media help in avoiding price competition?

    -Social media helps avoid price competition by allowing sellers to build a brand and connect with their audience on a personal level. When buyers perceive value in the brand and the solutions it offers, they are often willing to pay more, reducing the need for the seller to compete solely on price.

  • What is the 'zero to 100K in 12 months' challenge mentioned by Doug?

    -The 'zero to 100K in 12 months' challenge is a program that Doug and his wife Haley offer to help people start an online business and achieve significant revenue in a year's time. It's designed to provide value and guidance for those looking to succeed in the digital products market.

  • Why is it important to have control over the brand when selling digital products?

    -Having control over the brand is important because it allows the seller to dictate the narrative, establish trust, and set the value of the product. It also provides the flexibility to adjust pricing and marketing strategies without being bound by the rules and limitations of a third-party marketplace.

  • What are some common misconceptions about using social media for business according to Doug?

    -Some common misconceptions include the belief that one must share personal details or engage in certain types of content like dancing on reels or doing pranks to be successful. Doug emphasizes that the focus should be on creating content that solves problems and adds value to the audience, which is related to the digital product being sold.

  • How does Doug differentiate between quick fixes and a sustainable approach to selling digital products online?

    -Doug differentiates by emphasizing that quick fixes and hacks often don't lead to long-term success or financial independence. Instead, he advocates for a sustainable approach like building a personal social media brand, which provides control over lead flow, pricing, and scalability, and allows for a more substantial and lasting impact on the business.

Outlines

00:00

๐Ÿš€ Overcoming Online Marketplace Limitations for Digital Product Sales

Doug, a successful digital products entrepreneur, discusses the common pitfalls of relying on marketplaces like Etsy for selling digital products. He emphasizes the importance of not just listing products but also understanding the nuances of SEO, the challenges of price competition, and the often-overlooked aspect of scalability. Doug points out that marketplaces control the lead flow, making it difficult to achieve high search engine rankings without a deep understanding of SEO. He also addresses the issue of price competition, where sellers often lower their prices to the point of no return, affecting profitability. Lastly, he touches on the scalability problem, where relying solely on low-priced digital products can hinder the growth and financial goals of a business.

05:01

๐Ÿ“ˆ The Power of Personal Social Media Branding for Digital Product Sales

Doug explains the concept of scalability in the context of digital product businesses and the limitations of trying to achieve significant growth through low-priced products on marketplaces. He suggests that to truly scale a business, one must either increase sales volume or product prices substantially. Doug then introduces the idea of building a personal social media brand as a solution to the three main challenges: lead flow, price competition, and scalability. He argues that social media allows for direct control over lead generation and the ability to establish a brand that can command higher prices without being price competitive. Doug stresses that a strong personal brand can lead to greater trust and perceived value, which in turn can result in higher sales and the potential for exponential growth.

10:01

๐Ÿ’ก Building Trust and Scaling Through Social Media Branding

In the final paragraph, Doug discusses how social media can be leveraged to build trust with customers, which is essential for selling products at higher price points. He suggests that when customers develop trust in a brand, they are more willing to pay a premium for its products. Doug also addresses concerns about the perceived effort required to build a social media presence, emphasizing that it's not about being a vlogger or sharing personal details but rather about creating content that solves problems and is related to the digital products being sold. He concludes by encouraging viewers to engage with the content and consider the long-term benefits of building a personal brand over seeking quick fixes. Doug also invites viewers to participate in a challenge aimed at helping them achieve financial success through digital products.

Mindmap

Keywords

๐Ÿ’กDigital Products

Digital products refer to goods that are distributed in a digital format, such as software, e-books, online courses, and templates. In the video, the speaker discusses strategies for selling these types of products online, emphasizing the challenges and potential of this market.

๐Ÿ’กEtsy

Etsy is an online marketplace focused on handmade or vintage items and craft supplies. It is mentioned in the video as one of the platforms people use to sell digital products, but the speaker points out the limitations and potential downsides of relying solely on such marketplaces.

๐Ÿ’กSEO (Search Engine Optimization)

SEO is the process of improving the visibility of a website or a product listing in search engine results pages through various strategies. The video discusses the importance of SEO in driving traffic to digital products but also highlights the challenges of relying on it due to the lack of full control over search engine algorithms.

๐Ÿ’กLead Flow

Lead flow pertains to the number of potential customers who are exposed to or become aware of a product. The video emphasizes the importance of controlling lead flow for digital products, as it directly impacts the success of an online business.

๐Ÿ’กPrice Competition

Price competition is when businesses lower their prices to attract more customers, often leading to a race to the bottom in terms of pricing. The video script discusses the issue of price competition in digital product sales, where low prices can diminish profitability.

๐Ÿ’กScalability

Scalability refers to the ability of a business to grow, especially in terms of increasing revenue without a proportional increase in resources. The video talks about the need for digital product businesses to be scalable to achieve significant financial success.

๐Ÿ’กPersonal Social Media Brand

A personal social media brand is a professional presence on social media platforms that represents an individual's personal brand, values, and offerings. The video suggests that building such a brand can help overcome the limitations of marketplaces and provide more control over lead flow, pricing, and scalability.

๐Ÿ’กTrust and Reviews

Trust and reviews are crucial for online sales as they influence potential customers' decisions. The video discusses how establishing trust with buyers and obtaining positive reviews can help avoid price competition and allow for higher pricing of digital products.

๐Ÿ’กHockey Stick Growth

Hockey stick growth describes a situation where a business experiences a sudden, significant increase in growth, represented graphically by the shape of a hockey stick. The video uses this term to illustrate the desired type of growth for a digital product business.

๐Ÿ’กMarketplace Algorithm

A marketplace algorithm refers to the set of rules or processes that a platform like Etsy uses to rank products in search results. The video script points out that sellers do not have full control over these algorithms, which can affect the visibility and sales of their digital products.

๐Ÿ’กContent Creation

Content creation involves producing material such as text, videos, or graphics to engage an audience. In the context of the video, content creation is suggested as a means to build a personal brand on social media and attract leads for digital products by sharing solutions to problems.

Highlights

Doug and his wife Haley run a seven-figure digital products business, sharing their expertise on selling digital products online.

There's an over-reliance on quick hacks and marketplaces like Etsy for selling digital products, which has major flaws.

Three major flaws identified are lead flow, price competition, and scalability when selling digital products online.

Marketplaces control lead flow, and sellers can't fully control the algorithm for organic traffic.

Price competition is common in digital marketplaces, leading to historically low prices for digital products.

Building trust with buyers through reviews is essential to avoid being price competitive.

Scalability is often overlooked, but it's crucial for significant growth and financial independence.

Raising product prices is difficult when constantly competing on price.

Social media offers a solution to the three major flaws by providing control over lead flow, eliminating price competition, and enabling scalability.

Creating a personal social media brand allows for direct control over the brand's narrative and customer relationships.

Social media content should be related to the product, providing solutions to problems that resonate with the target audience.

Branding establishes perceived value, allowing customers to pay more for products they trust and connect with emotionally.

Having a personal brand on social media gives control over the business and mitigates reliance on third-party marketplaces.

Doug offers a free five-day challenge to help start an online business from zero to 100K in 12 months with digital products.

The challenge is highly valued for the content it provides to change lives and achieve financial goals.

Doug emphasizes the importance of a long-term approach over quick fixes and hacks for sustainable success in digital product sales.

Social media is a powerful tool for building a brand, not just for personal sharing but for providing valuable content to an audience.

Doug and Haley's experience and success in the digital products space provide credibility and actionable advice for aspiring entrepreneurs.